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ARTICLE · 28 SEPTEMBER 2016

False Advertising Liability For Affiliate Marketing

Foley & Lardner LLP
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Affiliate marketers should be aware of a recent expansion in false advertising liability in the courts premised on negative reviews, rankings, and product comparisons.

United StatesMedia, Telecoms, IT, Entertainment
Justin Sobaje
Justin Sobaje
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The proliferation of e-commerce websites along with the rise of social media, blogging, and online communities has greatly increased the importance of affiliate marketing. Affiliate marketing allows an affiliate to earn a commission by directing a customer to a company's website to purchase a product. Websites providing information, reviews, advice, and resources about particular types of products can earn substantial revenue by embedding affiliate links in webpages. Affiliate marketers should be aware of a recent expansion in false advertising liability in the courts premised on negative reviews, rankings, and product comparisons. Meanwhile, product manufacturers feeling aggrieved by statements made on product review websites now have a possible false advertising cause of action for seeking redress.

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